Wednesday Exhibits Patience


U.S. equities saw a rise today leading into and following the Fed’s decision to exhibit patience for “considerable time” around raising rates for the first time since 2006. As of midday, the S&P 500 had rallied the most since October of this year. Ultimately, stocks had the best day of 2014 with the S&P 500 posting a gain of 2.04% to 2,013.

Cannabis stocks showed mixed action today. MJIC Marijuana Index posted a gain of 1.85% and Benzinga 420 Marijuana Index closed pretty much unchanged.

Daily Positive: Another Canadian company began trading, PharmaCan (TSXV: MJN.V). This is an interesting company, as they are a fund with wholly owned subsidiaries and stakes in Canadian Licensed Producers. We are waiting to learn if or when there will be a dual listing on the OTC.

Daily Negative: We understand how exhausted and disenchanted cannabis investors must feel this year. See below for some uplifting thoughts.

It is inspiring to think about the Fed’s notion of having patience for considerable time. We know that this industry is very much in its infancy and with anything that is starting out, patience and passion are required. We sometimes get bogged down in the day-to-day, week-to-week fluctuations of the market and at times it seems to be without any clear reason or rationale.

Patience is about being present in order to navigate the now to get deftly to the future.

We are always thinking about the future or the big picture for the cannabis industry, but it is still important to be present with the here and now when serving investors. We hope that the public companies who are worthwhile will take the same approach. They can do this by focusing on building their companies, but also by keeping in touch with the market on their progress (when material and appropriate).

For investors, it is a tough time and patience is key. If you have selected something that is meant to be a bigger picture play and you’re not getting swept up in the pump and dump action, then you might take solace in the patience and it might require considerable time to see results.


The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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